Bangalore Real Estate Outlook, Micro Markets and Top Locations
Published on July 26, 2013 by Abilash Reddy
The developers in the city follow a cautious strategy for residential property pricing, resulting in a market which is governed by consumer demand rather than speculation. Also, the residential market provides ample options for both ready to move-in as well as under-construction properties.
A consistent appreciation of 8-10% is seen in property prices annually in last two years. The hot property areas with heightened demand remain the same with ORR topping the list. The demand for residential units is more evident in the mid-end category compared to premium and luxury segment. A buyer in Bengaluru can get a residential property with all basic amenities at a very competitive rate ranging from Rs 60 – 90 Lacs in flourishing areas like Sarjapur, Yelahanka and Whitefield.
On analyzing the current prevalent market rates to the property rates consumers are ready to pay; micro markets of Electronic City and Yelahanka are closest to buyer’s pricing expectations. On the other hand properties in Bannerghatta, Whitefield, Sarjapur Road and Hebbal have a higher market pricing as per buyers expectations. All these micro markets are popular destinations in Bengaluru due to their proximity to the IT/ITeS sector and average pricing for mid segment projects is above ₹ 4,500 psft
Bangalore real estate market grew towards the East and South due to the prospering IT and allied services and micro markets like Sarjapur, BTM Layout, Bannerghatta, Koramangla, Hosur Road developed exponentially over the last decade.
With the new airport at Devanahalli, the suburban areas of the north connecting the city to the airport came to focus and are witnessing rapid real estate and infrastructure development at present. The government has also earmarked projects like Aerotropolis, Devanahalli Business Park, and Global Finance District in North Bangalore. Hebbal, Devanahalli, Yelahanka and Hennur are the micro markets to look for towards the North.
Major population of Bengaluru is salaried with high percentage of young professionals creating high demand for the mid segment properties. Thereby demand of 66% for 2BHKs followed by 23% for 3BHKs is well justified.
There is a constant increase in the time frame in which consumers’ intend to make property purchase. The consistent market uncertainties are forcing buyers to follow - wait and watch strategy.
Demand in South Bangalore suburbs Electronic city and Bannerghatta road are on a downtrend primarily due to oversupply and excessive availability of ready to move in homes (over 7000 units).
There's been a lot of hype about north Bangalore, we see the zone open up to new launches in a phased manner. North Bangalore has over 5000 units under construction and less than 1000 units for immediate possession. The indicators point towards the down trend in Hebbal which is turning out to be unaffordable segment for the mid-income group.
Source: Research Charts by IndiaProperty
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